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Session 3B: Tourism and Development of Economic Corridors

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Session 3B: Tourism and Development of Economic Corridors Tourism and development of economic corridors Presentation Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 1 Content 1 Fundamentals of regional cooperation in Tourism Development 2 Case of ABEC Joint Tourism Master Plan Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 2 Content 1 Fundamentals of regional cooperation in Tourism Development 2 Case of ABEC Joint Tourism Master Plan Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 3 Fundamentals of regional cooperation in Tourism Development Why is it needed to work together in the ABEC region? Most visited Core products and Complementary Improved assets markets products and markets tourism Improved Almaty City Ski experiences Culture Shopping More tourists Bishkek City City break Sun & beach Religion More days Health & wellness Higher daily Issyk-Kul Business Adventure spending Nature Greater Karakol Hiking, biking, benefit Horse riding distribution Best assets Concept of developing • Large investments of public and private are distributed regionally bundled assets in sources across the clusters to improve the reach of • Increased and cheaper air access region in both key markets and motivations for • Improved and faster road access between core countries visiting assets Working together reduces costs and increase the feasibility of projects Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 4 Content 1 Fundamentals of regional cooperation in Tourism Development 2 Case of ABEC Joint Tourism Master Plan Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 5 Case of ABEC Joint Tourism Master Plan Development Concept of the Join Tourism Master Plan … ABEC Tourism Master Plan Area Historical Silk Road Proposed silk road bypass: Shonzhy/ Charyn, Turgen, Almaty, Bishkek, Taraz Proposed silk road bypass: Silk road by- Shonzhy/ Charyn, Kegen, Typy, Issyk-Kul, Bishkek, Song-Kul pass circuit system City Cluster and Suburban Cluster Natural Area Cluster integrated network of Resort Cluster clusters Water Network Mountain Network Land Network Silk road Border with Kazakhstan Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 6 Case of ABEC Joint Tourism Master Plan … Focusing on major primary motivations of visit, segments, and target markets …. Key segments Key Assets/ Clusters Target markets ▪ Business ▪ Almaty city ▪ Bishkek city ▪City break + ▪ Almaty area ▪ 1-day short trip ▪ Bishkek area ▪ Domestic ▪ Sun & beach ▪ Cholpon-Ata ▪ Regional CIS + ▪ PR China, S. Korea, ▪ Recreation ▪ Issyk-Kul lake UAE, India, Pakistan, Japan, ▪ Health and and EU Wellness ▪ Song-Kul ▪ Karakol ▪ Nature and ▪ Eastern Almaty region adventure ▪ Jambyl ▪ Culture Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 7 Case of ABEC Joint Tourism Master Plan … built upon major foundation pillars, …. ▪ Major foundation pillars (principles) for tourism development: ✓ Preservation of nature as the main asset through: － functional spatial planning (regulation on where to build what) － prevention of environmental degradation (water quality of lakes and aquifers, sewage treatment and solid waste management), and － preservation of potential future assets (Karakol airport). ✓ Development of quality standards for the sector (accommodation rating, regarding quality of facilities, tour guides qualification, and branding) ✓ Preservation of cultural practices and buildings relevant for tourism Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 8 Case of ABEC Joint Tourism Master Plan … main Development Drivers, …. ▪ To develop main tourism clusters (city, sub-urban, resort, natural, and cultural) with sub- plans including: ✓ zoning, ✓ tourism infrastructure, ✓ multi-lingual tourism information and signage, ✓ certified tour guides, and ✓ complementary services like (road support centres). ▪ The assets are embedded in the clusters with ✓ inter- and intra-cluster transport concepts, ✓ thematical and promotional specializations, ✓ clearly outlined target markets (China, UAE, Korea, EU, Russia); ✓ corresponding infrastructure (for example Chinese speaking guides, restaurants, and signage, or focus on health and wellness tourism around balneological assets, as PPP concessions). ▪ Integration in the region: circuits of regional experiences, facilitated by common visa regime, easy transportation modes, as well as regional branding, standards, and marketing to develop origin markets from more distant high-income countries Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 9 Case of ABEC Joint Tourism Master Plan … developing key support projects, such as Improvement of access to the region, … ALA-ASB $ 139 $ 53 FRU-ASB $ 124 $ 81 ✓ Cheaper and increased air access: ALA-KHG $ 53 $ 49 －improve regulation, and airport management FRU-KHG $ 51 $ 78 to reduce ground costs per passenger. ALA-TAS $ 75 $ 112 －attract more airlines to be operate Bishkek, FRU-TAS $ 58 $ 139 ALA-DYU $ 82 $ 61 and develop of an air Hub in Almaty FRU-DYU $ 72 $ 87 －regional system of low-fee/cost airline model TSE-ALA $ 91 $ 31 Total airline costs (Pax) in central Asia (ex. SAS) FRU-TSE $ 90 $ 57 FRU-ALA $ 35 $ 61 Total ground costs －Possible next step: regional airport tariff & tax (pax) FRU-OSS $ 44 $ 68 coordination $ 0 $ 50 $ 100 $ 150 $ 200 $ 250 ✓ Faster road access: Air Traffic; thousand trips between NE Asia and ﹣Faster road trips between Almaty/Issyk-Kul/ Europe Karakol roads, to improve flows and CAGR = 2.9% investments. 9 762 ﹣Silk Road visa and ABEC tourism pass to CAGR = cross mountains 5 971 5.7% 11 142 ✓ Effective institutional framework: 4 342 ﹣Well structures, capacitated and funded 2013 2030 PR China/ Europe Other Asian/Europe Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 10 Case of ABEC Joint Tourism Master Plan key projects – Institutional improvement ▪ The vast majority of the identified investments in the master plan require reforms to be feasible/bankable. Only a small portion of those can be implemented without the need of prior reforms and/or strong political commitment, to be at a risk level that could be acceptable by private investors. ▪ Suggested single institution with mandates, powers, and incentives to: ✓ enforce preservation of natural and cultural assets ✓ conduct functional planning and inter-ministerial/agency coordination ✓ coordinate tourism asset development and cluster approach ✓ serve as a one-stop shop for investors to negotiate concession design, incentives (for example water concession or long-term exclusivity for certain areas), and monitor and enforce service obligations, environmental and social contractual obligations; ✓ generate revenues, with the goal of further capacitating the single agency/company and eventually setting up a tourism fund ✓ develop a system of certification for accommodation, hospitality and tour guides in combination with skill development Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 11 Case of ABEC Joint Tourism Master Plan Suggested Immediate Actions: • Enforce the existing laws in protecting the natural assets: － Examples: run inspections and oblige the owners of resorts to comply with the 300 m. construction from the shore to allow the building of a trail around Cholpon-Ata, in KYG; Have inspectors issuing fine ordinances to environmental offences in KAZ • Resolve the open-air coal mining in Kara-Keche (allow tunnel based only with high environmental standards); • Curb Almaty city pollution caused by road transport; • Implement the legal reforms and sector institutional framework; － Example: create a tourism coordination committee chaired by Prime Ministers while performing feasibility studies on the set-up of one centralized institution per country, well funded. • Implement aviation sector reform, air hub in Almaty, improved route network in Manas • Confirm investor requirements with world leading companies and conduct pre-feasibility studies, to conceptualize concession design － Example: define a package of priority high impact investments and work on an integrated support packaged with a development partner as honest broker in Turgen and Karakol Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 12 Case of ABEC Joint Tourism Master Plan Key reforms required • Legal reforms required to de-risk/facilitate foreign investors: ✓ Foreign property ownership aligned with international standards ✓ Passage rights for tourism activities, particularly trails ✓ Expropriation regulations (criteria for fair price, how & whom appraises, declaration of public interest) ✓ Law enforcement practices, fines and their collection, related to the environmental protection; ✓ Urban planning and construction permits’ regulations (colour, types of materials, size, demolition costs, etc.) ▪ PPP management: ✓ Refine scheme design;
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